Govt Car Budget Increase By 111 Percent to N$984 Million

THE expected g increase in vehicle sales this year has been attributed to a number of factors, namely the on going expansive fiscal and monetary positions of the Ministry of Finance and Bank of Namibia, as well as purchase of vehicles by government.

The Ministry of Finance has allocated N$984,5 million to vehicle purchases in the 201415 National Budget, this is N$517, 8 million or 111% more than what was spent on vehicles last year, IJG Securities said yesterday.

The mining sector has purchased a number of commercial vehicles over recent months, largely on account of the on going construction of the Tschudi, Otjikoto and Husab mines.

Total new vehicles sales increased 15,3% month on month to a record month of 1 728 vehicles sold in February. This was 890 vehicles more than the average February figures of the past ten years.

The higher monthly numbers, compared to January, were on account of a 28,6% increase in commercial vehicle sales and a one percent rise in passenger vehicle sales, IJG Securities said yesterday.

On an annual basis vehicle sales showed positive results for the tenth consecutive month, with the number of vehicles sold 68,7% higher than a year ago. With the step up in the year to year numbers and the record sales during February, year to date figures remain above the levels seen as of February 2013, with 1 236 more vehicles sold compared to a year ago.

The 12 month cumulative measure remained positive and is now 23,3% higher than a year ago compared to 16,3% higher last month.

“In our view the growth in the month cumulative number is largely a result of a lower base in the previous year.

Sales of passenger vehicles increased by one percent month on month to 729 vehicles sold in one month, extending the previous month’s 27,3% increase,” the firm said.

On an annual basis, passenger vehicle sales rose, increasing37,5% after increasing 65,9% in January. Commercial vehicle sales rose 28,6% to a record sales figure of 999 vehicles sold in one month, which was due to higher sales numbers of light commercial vehicles on the back of government tenders coming through. On an annual basis, commercial vehicle sales increased by 94,7% compared to 50% recorded in January.

Source : The Namibian